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The time value of money is based on the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. In particular, if one received the payment today, one can then earn interest on the money until that specified future date. All of the standard calculations are based on the most basic formula, the present value of a future sum, "discounted" to the present. For example, a sum of FV to be received in one year is discounted (at the appropriate rate of r) to give a sum of PV at present. Some standard calculations based on the time value of money are: : Present Value (PV) of an amount that will be received in the future. : Present Value of a Annuity (PVA) is the present value of a stream of (equally-sized) future payments, such as a mortgage. : Present Value of a Perpetuity is the value of a regular stream of payments that lasts "forever", or at least indefinitely. : Future Value (FV) of an amount invested (such as in a deposit account) now at a given rate of interest. : Future Value of an Annuity (FVA) is the future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest. The time value of money is based on the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. In particular, if one received the payment today, one can then earn interest on the money until that specified future date. All of the standard calculations are based on the most basic formula, the present value of a future sum, "discounted" to the present. For example, a sum of FV to be received in one year is discounted (at the appropriate rate of r) to give a sum of PV at present. Some standard calculations based on the time value of money are: : Present Value (PV) of an amount that will be received in the future. : Present Value of a Annuity (PVA) is the present value of a stream of (equally-sized) future payments, such as a mortgage. : Present Value of a Perpetuity is the value of a regular stream of payments that lasts "forever", or at least indefinitely. : Future Value (FV) of an amount invested (such as in a deposit account) now at a given rate of interest. : Future Value of an Annuity (FVA) is the future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest.
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Is money a store of value?
No, because the value of money depreciates with inflation.
What gives us money its value?
Gold gives money it's value
The relationship between the value of money and the price level?
There is an inverse relationship between value of money and the price level. So if the value of money is low, then the price level is high or if the value of money is high, then the price level is low.
Which of the following statements accurately describes the relationship between commodity money and flat money?
Commodity money has value in itself while flat money has value only because it is given value
Which of the following most accurartely explains why fiat money has value?
Fiat money has value because the government declares that it has value.
What does it mean by money loses value isn't money money?
Money can lose value by inflation or gain value through deflation.
What gives money value?
Money has value because it serves as a medium of exchange, unit of account, and store of value. It is accepted by people as a commonly used medium for transactions and has a stable value recognized by society and governments. Confidence in the stability and acceptance of money by individuals and institutions also contributes to its value.
What is the difference between fiat money and token money?
Token money is a type of money whose intrinsic worth is less than its nominal value eg its value as money is less than its value as metal while fiat money is a type of money which intrinsic value is more than its nominal value.
What mean money as ameasure of value?
Money is recognized as a measure of value as the value and amount of money measures the value of a specific product or service. http://www.datadubai.com/
What is the duration of Value for Money?
The duration of Value for Money is 1.5 hours.
Is money a store of value?
No, because the value of money depreciates with inflation.
How do you add money to increase the amount of money in a money order?
You cannot. Money Orders are fixed value monetary instruments. You cannot increase the value of a money order. Once issued, its value does not change. If you wish to increase the value, you have to cancel the existing money order and request for a fresh money order with the new/increased value.
When was Value for Money created?
Value for Money was created on 1955-08-09.
What gives us money its value?
Gold gives money it's value
The relationship between the value of money and the price level?
There is an inverse relationship between value of money and the price level. So if the value of money is low, then the price level is high or if the value of money is high, then the price level is low.
Which of the following statements accurately describes the relationship between commodity money and flat money?
Commodity money has value in itself while flat money has value only because it is given value
What does time value of money refer to?
The time value of money is the increase in, or future/prjected value of, an amount of money, due to the implied interest earned on it over a period of time.
